By Andrea Heisinger
New York, March 5 - CenturyLink, Inc. priced $2.05 billion of senior notes (Baa3/BB/BBB-) in two tranches on Monday, an informed source said.
The $1.4 billion of 5.8% 10-year notes sold at 99.042 to yield 5.821% with a spread of Treasuries plus 380 basis points. The paper was priced tighter than talk in the 387.5 bps area, the source said.
A $650 million tranche of 7.65% 30-year bonds priced at 99.905 to yield 7.658% with a spread of Treasuries plus 450 bps. The bonds were sold at the low end of guidance in the 455 bps area.
Both tranches feature a change-of-control put at 101%.
Barclays Capital Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and RBC Capital Markets LLC were the bookrunners.
Proceeds, along with cash on hand and borrowings from a revolving credit facility, will be used to provide funds required to complete a concurrent tender offer.
CenturyLink was last in the market with a $2 billion deal in three parts on June 10, 2011. The 6.45% 10-year notes from that offering priced at 350 bps over Treasuries.
The broadband and telecommunications company is based in Monroe, La.
| Issuer: | CenturyLink, Inc.
|
| Issue: | Senior notes
|
| Amount: | $2.05 billion
|
| Bookrunners: | Barclays Capital Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC
|
| Change-of-control put: | 101%
|
| Trade date: | March 5
|
| Settlement date: | March 12
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BB
|
| Fitch: BBB-
|
|
|
| 10-year notes
|
| Amount: | $1.4 billion
|
| Maturity: | March 15, 2022
|
| Coupon: | 5.8%
|
| Price: | 99.042
|
| Yield: | 5.821%
|
| Spread: | Treasuries plus 380 bps
|
| Price talk: | 387.5 bps area
|
|
|
| 30-year bonds
|
| Amount: | $650 million
|
| Maturity: | March 15, 2042
|
| Coupon: | 7.65%
|
| Price: | 99.905
|
| Yield: | 7.658%
|
| Spread: | Treasuries plus 450 bps
|
| Price talk: | 455 bps area
|
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